EURUSD Elliot Waves Analysis For 1 February 2016
01 February 2016, EUR/USD
EUR/USD is currently trading with a bearish bias. During the previous trading week, Euro traded long and ended up bouncing along the upper resistive trendline. We expect the current downward movement to be the unfolding of wave (5) towards 1.063. Ideally, wave (5) should close below 1.063 but ultimately along the lower supportive trendline. This pair should be traded alongside other pairs such as AUD/HKD, CHF/JPY, EUR/CHF and NZD/JPY. These pairs have a strong positive correlation of up to +0.93 and are thus expected to move in a similar direction. Only buy or sell Euro if all the other positively correlated a pairs are giving the same signal.
Remain short with your target at 1.063 and the lower supportive trendline.
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